How to Measure Job Creation from Energy Efficiency and Renewable Energy Programs

In past posts, we have discussed how governments can use financing programs to encourage energy improvements and how energy improvements can turn undesirable properties into economic opportunities. In fact, economic development and job creation are some of the major benefits touted by governmental energy programs, even above and beyond the potential environmental benefits of such programs. The non-profit American Council for an Energy-Efficient Economy (ACEEE) has written extensively on the job creation benefits of energy programs, including a fact sheet and a series of case studies. Many other entities have put out their own case studies, such as World Resources Institute (WRI). But what is the best way to measure job creation? Is there a consistent, accepted methodology to measure the economic impact of energy programs so that programs can be compared to each other? This past fall, ACEEE put out a white paper detailing current practices and recommendations for verifying energy efficiency job creation. The paper first discusses various approaches to job verification. It then details current practices based on a survey of energy programs across North America. The paper then explains the barriers to obtaining credible job creation estimates and concludes with guidelines for estimating and reporting job creation benefits. The authors found that different programs use different methodologies, examine different impacts, use different standards to account for the impacts, and even at times use different definitions for key terms. For example, about half of the programs interviewed determine verify job creation through what the authors call a “bottom-up” approach, using surveys, contractor databases, and other methods to [...]

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